June 20, 2011

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Here Comes the Sun

Chinese Solar Firm Daqo New Energy (DQ,$DQ) is a Buy According to ValuEngine.com
Daqo New Energy Corp (DQ,$DQ). makes polysilicon, a material used in making solar panels. It sells the raw material to photovoltaic product manufacturers, who use it to make components such as solar cells, wafers, ingots, and modules. Its top three customers -- Yingli Green Energy, ReneSola, and a subsidiary of Suntech -- account for almost 90% of sales. The company began production in 2008 and went public in a late 2010 IPO. Among the solar industry firms, Daqo has the 3rd highest Return on Equity. Its ROE was 41.31% for the last 12 months. Its net profit margin was 28.49% for the same period. Please Click Here to Sign Up for a FREE TRIAL of Our Award-Winning Stock Valuation and Forecast Service ValuEngine has issued a BUY recommendation for Daqo New Energy Corp on Jun. 20, 2011. Based on the information we have gathered and our resulting research, we feel that Daqo New Energy Corp has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE valuation, forecast, and p/e ratio. Based on available data as of Jun. 20, 2011, we believe that DQ should be trading at $11.66. This makes DQ 29.30% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly

efficient and everything traded at its true worth. For DQ, we base this on actual earnings per share (EPS) for the previous four quarters of $2.86, forecasted EPS for the next four quarters of $2.22, and correlations to the 30-year Treasury bond yield of 4.20%. Subscribers can check out the latest valuation, forecast, and ratings figures on DQ from our Models HERE. Please Click Here to Sign Up for a FREE TRIAL of Our Award-Winning Stock Valuation and Forecast Service

MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 60.32% 39.68% 26.44% 13.66%

SECTOR OVERVIEW
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
0.47% 1.16% -0.02% -0.39% -0.49% 0.42% 0.12% -0.65% 0.66% 0.18% -0.35% 0.36% -0.94% 0.44% 0.39% 0.48%

MTD
-1.56% -4.36% -7.46% -3.98% -6.63% -7.26% -4.95% -4.58% -2.69% -2.47% -5.67% -3.14% -7.40% -3.61% -5.11% -2.95%

YTD
10.21% -13.69% -11.71% 3.73% 1.21% -12.26% -1.59% -9.35% -1.07% -3.27% 8.64% -1.69% -5.90% 1.12% -8.78% 1.93%

Valuation
2.57% undervalued 9.27% undervalued 11.85% undervalued 2.23% undervalued 7.22% undervalued 8.90% undervalued 4.48% undervalued 1.17% undervalued 4.50% undervalued 7.61% undervalued 6.25% undervalued 16.43% overvalued 2.74% undervalued 3.38% undervalued 1.57% overvalued 3.09% overvalued

Last 12MReturn
24.14% 37.79% 36.42% 11.92% 25.85% -1.98% 16.80% 12.17% 6.88% 23.78% 13.94% 25.89% 24.08% 20.10% 11.26% 18.91%

P/E Ratio
17.95 18.25 33.1 26.46 36.55 27.75 30.53 31.43 27.39 27.84 29.44 24.54 53.41 33.59 19.92 23.22